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AGENDA REPORT
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| | | | | | | | DATE:
| July 20, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-191 of the City Council of the City of Fairfield Approving the Selection of Community Action North Bay (CAN-B) as the Program Operator / Property Manager for the 710-724 Ohio Street Property, Authorizing the City Manager or His Designee to Execute the Memorandum of Understanding Between the City Of Fairfield and Community Action North Bay (CAN-B) Concerning Program Operator / Property Manager Services for the 710-724 Ohio Street Property, and Taking Other Related Actions |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The proposed resolution confirms the City Council’s approval of the selection of Community Action North Bay (CAN-B) as the Program Operator / Property Manager (PO/PM) for the 710-724 Ohio Street Property. In addition, the proposed resolution also authorizes the city manager to execute the Memorandum of Understanding (“MOU”) after negotiating such additions or changes as necessary based on the final post-rehabilitation inspection of the property scheduled for August 2021. |
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| | | | | | | | | DISCUSSION | Fairfield Housing Authority (FHA) owns the property located at 710–724 Ohio Street and 311-315 Jefferson Street (collectively known as “Ohio Street Property”) in the City of Fairfield. The property at 710 Ohio Street consists of two bedrooms with one bathroom, includes a triplex unit addressed as 311 Jefferson Street (each apartment has two bedrooms and one bathroom). The property at 724 Ohio Street consist of a one bedroom and one bathroom, which includes a detached single-family structure addressed as 315 Jefferson Street with six bedrooms and three bathrooms. The Ohio Street Property has been vacant for the past 3 to 4 years. Due to the homeless crisis in Fairfield, FHA staff believes the properties will be ideal to help address the critical need for emergency and transitional housing for those families or individuals that are homeless or near homeless. The properties are currently under rehabilitation to ensure that they are brought up to code and meet all health and habitability standards required of existing housing.
On December 1, 2020, council approved Resolution 2020-232 approving the scope of work and award of a construction contract with Pro Builders to rehabilitate the Ohio Street Property with a combination of Low Mod and Community Development Block Grant (CDBG) funds. On December 15, 2020, council approved Resolutions 2020-244 and 2020-245 approving the allocation of CDBG funds in the amount of $150,000 for homeless/ transitional housing operating expenses and $320,000 for the rehabilitation of the Ohio Street Property. After the approval of the above stated resolutions staff issued a Request for Proposal (RFP) for an entity to operate and manage the provision of homeless housing at the Ohio Street Property.
In conjunction with the rehabilitation work, the City issued a RFP on March 13, 2021, to invite qualified and experienced organizations to submit a written proposal to operate the Ohio Street Property. The primary scope of services will include but not be limited to temporary/transitional housing and/or emergency shelter including supportive services for up to 50-75 individuals and/or families experiencing homelessness over the year. A MOU would be executed between the FHA and the intended provider to memorialize the services and conditions of operation to be provided at the Ohio Street Property .
To ensure a fair and transparent process the following steps were taken for the issuance of the RFP. The RFP was made public on the City's website, through a press release published in the Daily Republic, and various social media platforms. In addition, a notice was sent on two separate comprehensive Provider LISTSERVs managed by both HomeBase and Homeless Services Division (HSD) to 449 local service providers. The Marketing and Outreach Division (MOD) did a web story about the RFP that was sent out to 21,000 subscribers.
Inquiries regarding this RFP were accepted through 5:00 p.m. on April 9, 2021. HSD and FHA collaborated to provide answers to all inquiries and posted all questions and answers on the City's website by 5:30 p.m. on April 13, 2021. Proposals for this RFP were due by 5:00 p.m. on April 19, 2021. HSD received three on-time proposals, and one late submission that was rejected per the RFP guidelines.
HSD put together a comprehensive non-conflicted, diverse mix of individuals from City departments and local service agencies with expertise in shelter operations and federal grant management to serve on the Rank and Review Panel (Panel). The Panel met on April 21, 2021, for a total of 3.5 hours. The Panel evaluated each proposal's program experience, its design, cost efficiency including financial management, and their ability to accurately respond to the RFP.
After careful review of the submittals, each application was scored. Out of 100 points, CAN-B scored 74.5; Mission Samoa scored 55.25; and Solano County Black Chamber scored 35. The Panel felt that in order to meet CDBG timeliness, CAN-B would be the best option, due to their experience with federal funding, ability to fundraise for homeless causes, and a budget that suggested a willingness to provide a much higher in-kind and monetary match in addition to the 25% match required in the RFP.
Based on the scoring and recommendation from the Panel, CAN-B was selected as the highest scoring PO/PM for the Ohio Street Property. On May 18, 2021, Housing Services staff scheduled an interview with the Executive Director, Kari Rader, to obtain further clarification on their responses to the RFP. After the interview Housing Staff was satisfied with the additional information and agreed with the Panel’s recommendation to select CAN-B as the PO/PM for the Ohio Street Property. The MOU, attached hereto in draft form, will be executed once Housing Staff and CAN-B have finalized all terms of the services to be provided which is also dependent on the final inspection of the property once the rehabilitation work is completed by early mid-August 2021.
As the PO/PM for the Ohio Street Property, CAN-B will receive $150,000 (on a reimbursement basis) of CDBG funds to aid with operational expenses. CAN-B is required to provide at least a 25% match to the full amount of operational expenses which includes but is not limited to the amount of the City contribution. Housing Services will also provide Tenant Based Rental Assistance Vouchers to subsidize the rent for four of the transitional Housing units.
CAN-B will provide a variety of housing and social services for homeless individuals and families that are referred to them by the City. They will provide emergency and transitional housing and services to as many Participants at the Ohio Street Property that can be safely accommodated without exceeding maximum occupancy standards.
Homeless referrals will be from the City (HSD, Housing Services, Housing Authority, the HIT Team, etc.), and the intake process will take place at CAN-B’s offices at 416 Union Avenue, several blocks from the Ohio Street Property. There will be no walk-up service at the property.
CAN-B will be providing a comprehensive property management plan detailing maintenance, lighting and security, onsite staffing, hours of operation, emergency procedures, and resident rules. Individuals and families residing at the property will meet with a case manager to develop a service plan tailored specifically to that individual’s/family’s needs. The final scope of services and policies will be attached as an exhibit to the MOU.
CAN-B will lease the Ohio Street Property from the FHA for an annual rent of $1.00. The initial lease term will be for one year and if the tenant is not in default, they will have three (3) options to extend the lease for one (1) year each. The tenant will be responsible for all utilities at the Ohio Street Property including water, sewer, garbage, and electricity. The tenant will also be responsible for servicing and maintaining all electrical, plumbing, and mechanical systems on the premises. Housing will provide CAN-B a copy of the scope of work that will be completed on the Ohio Street Property for their review and copies of any warranties for labor and materials once the rehabilitation is complete. The Lease Agreement, attached hereto in draft form, to be executed between the FHA and CAN-B, will provide all the terms, details, and responsibilities of each party. CAN-B’s acceptance and execution of the lease is also dependent on a final inspection of the Ohio Street Property after completion of the rehabilitation work.
Housing Services therefore recommends that council approve the selection of CAN-B as the PO/PM for the Ohio Street Property and authorize the city manager or his designee to execute and make any changes that may be necessary to effectuate the MOU for the aforementioned property.
Environmental Review
The selection and approval of the PO/PM and authorizing the city manager to sign the MOU are exempt from environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15301, which exempts the operation, repair, maintenance, permitting, leasing, licensing, and minor alteration of existing public or private structures and facilities, involving a negligible expansion of a former use; and pursuant to Section 15303, which exempts conversion of existing small structures from one use to another where only minor modifications are made to the exterior of the structure, including to apartments, duplexes, and similar structures designed for not more than six dwelling units in urbanized areas. The Ohio Street Property include a triplex unit and three detached single-family structures and are currently undergoing rehabilitation to ensure they are in safe and healthy condition. The proposed action authorizes the use and operation of the properties.
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| | | | | | | | | FINANCIAL IMPACT | | The funds for the homeless transitional housing operating expenses were previously approved per Resolution No. 2020-244 approving the CDBG substantial amendment to the fiscal year (FY) 2019–2020 Annual Action Plan. The funds for the rehabilitation work were approved per Resolution 2020-245 approving the CDBG substantial amendment to the FY2020–2021 Annual Action Plan. Additionally, on December 1, 2020, the council approved Resolution 2020-232 approving the scope of work and awarding a contract to Pro Builders and updating the FY2020–2021 budget for the allocation of Low Mod and CDBG funds for the rehabilitation of the property. Execution of the Lease will result in annual revenue of $1.00 that will be deposited into Low Mod Fund. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | None.
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| | | | | | | | | ALTERNATIVE ACTION | | The council could decide not to approve the selection of CAN-B as the PO/PM for the Ohio Street Property and not authorize the city manager to execute the MOU which would entail reissuing the RFP and potentially leaving the Ohio Street Property vacant and open for vandalism after a great expenditure of approximately $600,000 rehabilitating the property. |
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| | | | | | | | | STAFF CONTACT | Jesus M. Morales, Sr. Housing Project Manager
(707) 428-7426
jmorales@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, Finance Department
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| REVIEWERS: | | Reviewer | Action | Date | | Jones, LaTanna | Approved | 7/7/2021 - 8:23 PM | | Alexander, Amber | Approved | 7/8/2021 - 2:28 PM | | Alexander, Amber | Approved | 7/8/2021 - 2:29 PM |
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